Motor Vehicle Manufacturer / Dealer ($20,000) - Daimler Bond - Statewide in Pennsylvania

Brief Summary

The $20,000 Pennsylvania dealer bond is written to the Commonwealth and to every person who deals with you in your authorized capacity. Form MV-375 limits what the Commonwealth can claim to fees, sales tax and monetary penalties, and the bond stays in force continuously until the surety gives PennDOT 60 days notice.

75 Pa.C.S. 1335 requires a $20,000 bond from Pennsylvania vehicle dealers and manufacturers before PennDOT issues dealer registration plates, and PennDOT Form MV-375 applies that amount to each place of business. The bond is continuous, names the Commonwealth and anyone who transacts with the dealer in its authorized capacity as obligees, and cannot be cancelled without 60 days notice to the Bureau of Motor Vehicles.

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How to Apply for a Motor Vehicle Manufacturer / Dealer ($20,000) - Daimler Bond:

• Confirm how many places of business you operate, since MV-375 lists $20,000 for each one.
• Check whether a Commonwealth bond you already hold matches or exceeds this one in amount and coverage.
• Give the surety your exact business name and each location address as licensed.
• Have the surety execute the original MV-375 and attach its power of attorney if an attorney in fact signs.
• File the bond with PennDOT's Bureau of Motor Vehicles with your dealer registration plate application.
• Keep the bond in force continuously and replace it before any cancellation takes effect.

Detailed Information About the Pennsylvania Motor Vehicle Manufacturer / Dealer ($20,000) - Daimler Bond:

Who the bond protects

Form MV-375 (3-25) binds the dealer and the surety to the Commonwealth of Pennsylvania and to any person who enters into a transaction with the dealer in its official capacity as authorized by the Commonwealth. The condition is that the dealer complies with the laws and regulations governing its business and does not cause the Commonwealth a monetary loss, which the form limits to fees, sales tax and monetary penalties.

Amount and locations

75 Pa.C.S. 1335(a) sets the dealer and manufacturer bond at $20,000, and PennDOT issues dealer registration plates only after it is posted. The MV-375 instructions list $20,000 for each place of business. Under section 1335(a.1), a dealer or manufacturer with a bond already on file in the Commonwealth's name, in an amount and coverage at least equal to this one, does not file a separate bond.

Dealers that also issue temporary plates

A dealer authorized to issue temporary registration plates also falls under 67 Pa. Code 43.9. That bond answers for monetary losses such as dishonored checks and unpaid fees or taxes, and a monetary penalty left unpaid 45 days after assessment counts as a loss. If claims exceed the bond, the Commonwealth's own claims come first. If the bond is reduced or a judgment on it is outstanding, temporary registration privileges are suspended until the original amount is restored.

Keeping it in force

The MV-375 bond is continuous. A surety that cancels or does not renew it must notify the Bureau of Motor Vehicles at least 60 days before that takes effect. If your surety sends a cancellation notice, use that window to put a replacement bond on file.

Eligibility and Requirements for a Pennsylvania Motor Vehicle Manufacturer / Dealer ($20,000) - Daimler Bond:

• Obligees: the Commonwealth of Pennsylvania and persons transacting with the dealer in its authorized capacity.
• Bond amount of $20,000 for each place of business on Form MV-375.
• Commonwealth losses limited to fees, sales tax and monetary penalties.
• At least 60 days notice from the surety to the Bureau of Motor Vehicles before cancellation or nonrenewal.
• Exempt under 75 Pa.C.S. 1335(a.2): farm equipment dealers, mobile home dealers and manufacturers, and modular housing manufacturers.

Pennsylvania Motor Vehicle Manufacturer / Dealer ($20,000) - Daimler Bond FAQs:

Official and Additional Resources for the Pennsylvania Motor Vehicle Manufacturer / Dealer ($20,000) - Daimler Bond: